2017, the year digital advertising overtook TV advertising
Here we are: advertisers now spend more on digital than on traditional television.
This is in any case what the Magna IPG Brands study forecasts for 2017, according to which digital advertising spending will reach 209 billion dollars worldwide, up 14% – or 41% of the market – while the television will drain $ 178 billion, down 2%, and now occupying 35% of the market. The global media advertising revenue market will take 4.1% to $ 508 billion.
Logically, the gap between digital and linear television is still likely to grow for the next few years: for its 2018 forecasts, Magna envisages spending on digital growing by 13% to $ 237 billion, while television will gain 2.5% to reach $ 183 billion – driven by richer international news, such as the Olympic Games and the midterm elections in the United States.
It should be noted that the performance of the TV support remains stable, or even slightly increased, depending on the year, as illustrated in the graph above. In most cases, the big historical advertisers still keep a large part of their budget on TV, even if Google and Facebook are working hard to make them switch to the digital side.
Regarding the French market, Magna has revised its forecasts upwards and now expects an advertising market to grow by 1.3%, to 10.9 billion euros for 2017. Traditional media (television, press, radio, outdoor, cinema) will show a withdrawal of 3% (around 200 million euros), with 6.9 billion euros in advertising revenue, while online media will reap an additional 350 million euros (+ 10%), now concentrating 3.9 billion euros in advertising revenue. Digital will form 39% of French advertising investments. Television advertising revenue rose 1% to 3.3 billion euros, benefiting from relaxed regulations on sponsorship rules.
Next milestone? Magna IPG Brands predicts that digital advertising will occupy 50% of all advertising spend worldwide in 2020. The appointment is made.
NB: net amounts.